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Social standards
German policy: decent terms and conditions of employment for all
As the German government understands it, core labour standards are an important element of social human rights. All countries - and all businesses - must be measured against the degree to which they observe these standards. Social standards form the foundation of a socially responsible economic process. The aim of German development policy is to help promote economic growth and to help establish decent working and living conditions in partner countries - since both serve poverty reduction.
Germany is therefore committed to helping enforce fundamental labour laws
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by supporting international organisations
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by means of dialogue with partner countries
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by cooperating with the private sector.
Supporting international organisations
Germany supports the ILO, the lead institution for implementing core labour standards worldwide. Germany promotes the ILO's Decent Work Country Programmes within the framework of development cooperation to help implement the ILO's Decent Work Agenda. Germany's support for the Country Programmes focuses on expanding social dialogue, further combating child labour and creating decent jobs in developing countries.
Over the past few years German development cooperation has promoted a number of ILO projects, such as the International Programme on the Elimination of Child Labour (IPEC). Germany was also involved in the World Commission on the Social Dimension of Globalisation set up by the ILO. In 2004 the Commission, made up of experts from governmental organisations, the private sector, trade unions, non-governmental organisations (NGOs) and academia, put forward its concluding recommendations, which were welcomed by the German government. These form part of the basis for Germany's policy of strengthening the social dimension of globalisation.
Germany is also working hard to ensure that international development organisations such as the World Bank, the International Monetary Fund (IMF), the UN Development Programme as well as the European Union put fundamental labour laws on the agenda in dialogue with developing countries. The World Bank is now paying increasing attention to the ILO conventions and is examining to what extent minimum social standards can be made a conditionality for the granting of loans.
Another particular matter of concern for the German government is stepping up cooperation between the World Trade Organization (WTO) and the ILO. Many developing countries fear that industrialised countries are abusing the debate on social standards to protect their own economies from competition. By generously opening up their markets to products from developing countries, the industrialised countries could allay these fears. The rules established on the global market should offer all countries equal opportunities.
Dialogue with partner countries
German development cooperation supports measures to introduce and respect core labour standards in partner countries. That includes training trade union experts on the social and economic aspects of globalisation. For example, governments in partner countries, as well as also trade unions and business associations, receive support during the implementation of labour law reforms.
NGOs and in particular trade unions have a key role to play here. They establish contact with employees, run training courses and workshops, and represent the interests of the workforce in dealings with employers and public authorities. They are also important partners when it comes to publicising, formulating, introducing and monitoring social standards.
Cooperation with the private sector
Internationally active businesses benefit from globalisation; they open up new markets and win new suppliers. In their particular area of operations these companies bear responsibility - and also have the opportunity - for eliminating social ills in developing countries. They can bring their influence to bear, for example, to prevent human rights violations in their area of operations. They can also ensure compliance with human rights obligations such as core labour standards, and standards on environmental protection or on combating corruption.
Economic cooperation is often a more efficient means for eliminating social ills than political measures. This is why the BMZ is successfully engaged in intensive cooperation with the private sector in various areas:
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Voluntary codes of conduct and economic initiatives:
In 2001 the BMZ, together with representatives from companies and business associations, from NGOs, trade unions and government organisations, founded the Round Table Codes of Conduct. This Round Table promotes the introduction of voluntary codes of conduct to set social standards in German businesses with production sites or suppliers in developing countries. Germany also supports global economic initiatives such as the UN's Global Compact, which promotes stronger social commitment from businesses in the areas of human rights, labour standards, environmental protection and combating corruption.
See also the section on voluntary codes of conduct -
Export credit guarantees:
Germany uses export credit guarantees to insure German exports against economic and political risks. When a foreign buyer defaults on payment or goes bankrupt, or in the case of violent conflicts, the exporter is indemnified for the majority of the loss by an Euler Hermes credit insurance. The Organisation for Economic Cooperation and Development (OECD), with the cooperation of the BMZ, adopted what have become known as environmental guidelines to introduce binding regulations governing ecological, social and development policy aspects of export guarantees in the OECD. International standards such as those applied by the World Bank Group form the basis of these guidelines. For instance, all ten of the World Bank's safeguards are applied as standards in decisions concerning export guarantees, and the eight International Finance Corporation (IFC) standards are applied when it comes to project funding. -
Fair trade:
Fair trade enables producers to obtain guaranteed minimum prices for their products. These prices are calculated such that the producers are able to cover their costs while still having enough left over to make a living. The BMZ supports fair trade; it is an effective instrument for poverty reduction. One focus of these measures involves raising the awareness of German consumers concerning the purpose, the principle, the products, and the social and political context of fair trade.
See also the section on fair trade -
Development partnerships with the private sector:
In development partnerships with the private sector, the state and private businesses are equal partners in development cooperation projects. One of the key objectives of all such arrangements is to eliminate indecent working conditions in developing countries, and establish social standards on a sustainable basis.
See also the section on cooperation with the private sector
More information
Information
Publications
- Good work worldwide | Vision paper by Federal Minister Dr Gerd Müller and Federal Minister Andrea Nahlesnew window, PDF 1.5 MB, accessible 02/2015 | pdf | 1.5 MB | 12 P. | accessible
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Social and Ecological Market Economy Principles in German Development Policy
Strategies 158 new window, PDF 234 KB, accessible 07/2007 | pdf | 234 KB | 6 P. | accessible - Fighting Poverty More Effectively – Worldwide | Cross-Sectoral Strategy on Poverty Reduction new window, PDF 1.7 MB, accessible 11/2012 | pdf | 1.7 MB | 16 P. | accessible